Major Fib levels confluence and harmonic formation, offering the possibility of entering a short position in a bearish biased market. Looking to place stop above previous structure high and target at the 0.382 retracement of the A to D move.
Strong Fib ratio confluence at a significant level of support/resistance. I will follow this pair closely, watching price action and checking out for RSI overbought levels if the market reaches the entry zone.
The (4 hour) 10:00 candle bar on 06/11/2014 sharply broke below the 1.24700s resistance level, indicating a bearish market continuation. My aim is to go short on the pair, once it tests this level which should now become support. This prediciton is backed up by an X to A 0.618 retracement on this same level, and RSI divergence on the 15 min chart.